The exchange rate for the bolivar on the black market, which is tolerated despite being illegal, has plummeted by 99 percent since Maduro took office in 2013.
The government is planning a currency overhaul for June that would remove three zeroes from prices. Critics have questioned whether authorities will be able to print new bills in time.
Harry Van Alstyne and his wife Susan used to go out to dinner every Saturday night — until his pension was cut by 29% last October.
Now, they’re thinking about selling their home and skipping their annual trip to Maine. They’ve already dipped into their savings.
The funding shortfall across Illinois’s five retirement systems climbed to $137 billion by last June, a jump of about $17.8 billion since 2015, after the government for years failed to made adequate contributions. That pension deficit — more than four times larger that its debt to general-obligation bondholders — is adding hundreds of millions of dollars in costs to Illinois’s budget each year as the government plows more money in to catch up.
African nations have sold $18.3 billion of euro and dollar-denominated debt so far in 2018, already beating full-year records. Nigeria, Kenya, Senegal, Egypt and Angola have all issued 30-year tranches. Ghana is planning to sell as much as $2.5 billion of Eurobonds in 2018 and South Africa $3 billion.
The borrowing gains pushed the monthly consumer debt total to a fresh record of $3.87 trillion.
The Manhattan Institute’s Nicole Gelinas notes that “from the 1960s through the beginning of the financial crisis, Treasury rates never fell below 3 percent, and they were often several percentage points above that.” In 2007, the Great Recession arrived in December when the national debt was $7.5 trillion and the average interest on it was 4.5 percent. Imagine paying 4.5 percent on today’s $16.5 trillion debt.
“A monetary policy-induced rise in U.S. rates of 100 basis points reduces GDP in advanced economies and in emerging economies by 0.5 and 0.8 percent, respectively, after three years,” they wrote. “These magnitudes are in the same ballpark as the domestic effects of a U.S. monetary shock, which reduce U.S. GDP by about 0.7 percent after two years.”
The central bank is also nearing a limit on owning more than a third of the country’s public debt.The ECB is widely expected to end its 2.55 trillion euro bond-buying programme in December, although recent, weaker-than-expected economic data may test its resolve.
In a recent survey, 64 percent said they’re anticipating an increase in property values during the next year, according to findings from Gallup.That’s the highest share since the housing bubble in the mid-2000s, when 70 percent were predicting price levels to soar.
The UK’s households are borrowing more money than they are saving for the first time since the so-called “Lawson boom” in the Eighties, the credit rating agency Fitch has warned.
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